Statoil's purchase represents a major stake in the Marcellus Shale play in Ohio, Pennsylvania and West Virginia. This is part of a strategic plan to increase the company's onshore operations in the United States.

Contact Our Marcellus& Utica ShalePractice Group1-800-967-8251R. ChristopherAndersonCharleston, W.Va.rcanderson@spilmanlaw.comThe Natural Gas Industry:2012 Year in Review & LookAheadIn 2012, industry observers began to see a divergencein production activity in the Marcellus and Utica Shaleregion. Producers with liquids-rich holdings began todivert rigs from the dry gas areas to the Utica andwestern portions of the Marcellus where oil and naturalgas liquids (NGLs) predominate. Dry gas productionremained robust, however, as producers withsubstantial dry gas holdings continued their drillingprograms to generate operating revenue or to securetheir land investments. The shift in focus from dry gasto oil and NGLs was driven by sustained low naturalgas prices coming out of last year's unseasonablywarm winter, along with the continued decoupling ofnatural gas and oil prices. Spot prices at Henry Hubwere under $2.00/MMBtu for most of April 2012 andnever closed over $4.00/MMBtu. By contrast, WTI spotprices remained comfortably above $85/Bbl for most ofthe year, and stayed over $100/Bbl during March andApril when Henry Hub prices were at their lowest.Looking ahead, it will be interesting to see whethernatural gas can hold onto the price gains that itrealized in the latter half of 2012, as this will giveproducers some degree of revenue stability that theyrequire for continued development. Key to this iswhether the United States experiences a more normalwinter in 2012-2013 in contrast to the unseasonablywarm temperatures experienced in 2011-2012. But,2013 should also see demand-side gambits come intoplay that have the potential to sustain favorable pricestability for natural gas producers. For example, willIn The NewsPlease Take Our Reader SurveyWe would appreciate your candid feedback onour short reader survey. Your opinions andsuggestions will help us improve the quality ofour e-newsletter. Personal information andsurvey responses will be completely confidential.Click here to be taken to our reader survey.Spilman Member Speaks atNational EnvironmentalConferenceEarlier this month, the National GroundwaterAssociation held its 2012 Groundwater Expo andAnnual Meeting. Spilman member NathanAtkinson attended and delivered a presentationtitled "Hydraulic Fracturing: A Litigator'sPerspective and What Your Company Needs toKnow about Potential Liability" to an audience ofwell system contractors, drillers, manufacturers,scientists and government representatives.Addressing litigation concerns, Mr. Atkinsonspoke from the unique perspective of anattorney who defends energy companies. Lawsuits alleging exposure to drilling, hydraulicfracturing, chemicals used in these processes,and naturally occurring compounds (includingmanganese, iron and radon) are becoming moreprevalent. Mr. Atkinson's presentation addressedthe claims of aggressive plaintiffs' counsel,preventive measures that can be taken to avoidexpensive litigation relating to these claims, andbest practices from a litigator's standpoint.The National Groundwater Association is apolicymakers authorize large-scale export of liquefiednatural gas to European, South American and Asianmarkets? And, if so, to what extent? Also, withPresident Obama's reelection, regulatory pressure onthe coal industry is expected to continue.Consequently, 2012's trend of coal-to-gas switchingamong power plants is likely to continue as well.Further, 2012 saw the beginnings of a revival inAmerican manufacturing as low domestic energy costsoffset low labor costs in Asian countries, thus creatinga pivot back to domestic manufacturing in chemicalsand durable goods. As this trend gathers momentum,demand for natural gas and NGLs should continue. Read the full article on our website. nonprofit organization composed of U.S. andinternational groundwater professionals. Theorganization aims to provide guidance for soundscientific, economic, beneficial development,protection and management of the world'sgroundwater resources. Statoil Acquires 70k Acres inMarcellus Shale FieldStatoil's purchase represents a major stake inthe Marcellus Shale play in Ohio, Pennsylvaniaand West Virginia. This is part of a strategic planto increase the company's onshore operations inthe United States.Read more.Marcellus Shale Team MemberNathan B. AtkinsonWinston-Salem, N.C.Mr. Atkinson's primary area of practice is litigationfocusing on complex tort litigation and complex multi-party commercial litigation. His experience includeslitigating complex environmental and toxic tort lawsuitsinvolving exposure to various chemicals andcontaminants, and litigating complex multi-party lawsuits involvingdrilling, fracking, procurement of energy, extraction of natural resourcesand environmental contamination. Mr. Atkinson also representsbusinesses in litigation involving exposure to naturally occurringradioactive materials ("NORM"), water contamination and masschemical exposure. Click here to read his full professional biography.www.spilmanlaw.comThis is an attorney advertisement. Your receipt and/or use of this material does not constitute or create an attorney-clientrelationship between you and Spilman Thomas & Battle, PLLC or any attorney associated with the firm. This e-mailpublication is distributed with the understanding that the author, publisher and distributor are not rendering legal or otherprofessional advice on specific facts or matters and, accordingly, assume no liability whatsoever in connection with itsuse.Responsible Attorney: Michael J. Basile

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